The rand was marginally firmer in midday trade on Wednesday, tracking the euro amid a mild improvement in global risk appetite fuelled by a spike in equity markets.

At 12:05 the rand was bid at 7.4314 to the dollar from 7.4483 at its previous close. It was bid at 10.4141 to the euro from its previous close of 10.4337 and was at 11.8918 against the sterling from 11.9196.

The euro was bid at $1.4012 from $1.3975 previously.

A local currency trader said: "The rand is firm tracking a stronger euro.

If the single currency continues to bounce, we could see the rand hit 7.38, and then 7.28 against the dollar.

RMB analysts noted in their morning report that yesterday the EU made it clear that they would give their formal approval to the Greek budget proposals expected today.

"This isn't a Best Film award, which would be a bail-out for the country but a Best Supporting Actor is enough to take some stress off risky assets after My Big Fat Greek Downgrade by the ratings agencies sent markets into a spiral in December," analysts John Cairns and Nema Ramkhelawan said.

"All this helps: equities, commodities and the EUR are all up ? and January's falls that threatened to turn into a major tumble have slid into the background of investor's minds. US dollar/rand as a result has made progress; yesterday's moves through 7.48 open the way for 7.38.

"The very positive local vehicle sales data certainly helped. The rand though is looking a bit extended relative to its peers. Also be aware that we have a busy day on the data front. Given Monday's international data, the bias must be for positive data. Finally, after a busy day, markets could go into a lull in front of the ECB meeting tomorrow and the US non-farm payroll data on Friday. Resistance is at US dollar/rand 7.5350," Cairns and Ramkhelawan said. concluded Dow Jones Newswires reported that in the foreign exchange markets, gains in equities helped risk appetite, although investors remained cautious ahead of rate decisions from the European Central Bank and the Bank of England this week, as well as Friday's US jobs report.

Bonds range bound in moribund trade

South African bonds were a smidgen softer in noon trade on Wednesday which traders attributed to a little bit of profit-taking.

However, in the absence of any real drivers, they continue to trade in a fairly tight range.

By 11:40 the short-term government R154 bond was bid at 7.180 percent after closing at 7.155 percent on Tuesday and the medium-term R157 was at 8.325 percent after closing at 8.305 percent previously. The long-term R186 was bid at 9.135 percent from 9.100 percent previously.